By No Bullshit Bitcoin in Research — Oct 26, 2022

Margin Squeeze - How Bitcoin Mining Revenues Evaporated over the Past Months

Bitcoin mining revenues have hit rock bottom due to a lethal combination of growing global hashrate and the falling bitcoin price.

Even though we are in the middle of a bear market, bitcoin miners continue ramping up hashrate financed by massive equity raises. This hashrate ramp-up has led the Bitcoin network to increase its mining difficulty on several occasions lately, and it currently sits at an all-time high.
Meanwhile, the bitcoin price keeps hovering around the 2017 high of $20k, 71% below its $69k all-time high. Due to this combination of rising difficulty and the falling bitcoin price, miners dig out fewer and less valuable bitcoin than before.
This article analyzes how the falling miner revenue has affected mining margins, showing that many mining operations are now close to being underwater.